MSFT FY 2017 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

FY 2017 Earnings

Reported August 2, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2017	Prior Q	FY 2016	QoQ Change	YoY Change
Revenue	$96.6B	—	$91.2B	—	5.9%
Op. Income	$29.0B	—	$26.1B	—	11.3%
Gross Margin	64.5%	—	64.0%	—	0.5pp
Net Margin	26.4%	—	22.5%	—	3.9pp
EPS (Diluted)	$3.25	—	$2.10	—	54.8%
Free Cash Flow	$31.4B	—	$25.0B	—	25.6%

Revenue Flow

Item	Amount
REVENUE	$96.6B
Cost of Revenue	$34.3B
GROSS PROFIT	$62.3B
R&D Expenses	$13.0B
Selling & Marketing	$15.5B
General & Administrative	$4.5B
SG&A Expenses	$19.9B
Other Expenses	$306M
Operating Expenses	$33.0B
Cost & Expenses	$67.2B
OPERATING INCOME	$29.0B
Interest Income	$1.4B
Interest Expense	$2.2B
Other Income/Expenses	$876M
INCOME BEFORE TAX	$29.9B
Income Tax Expense	$4.4B
Net Income from Continuing Ops	$25.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$25.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$25.5B
D&A	$8.8B
EBIT	$32.1B
EBITDA	$40.9B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$96.6B
Cost of Revenue	$34.3B
GROSS PROFIT	$62.3B
R&D Expenses	$13.0B
Selling & Marketing	$15.5B
General & Administrative	$4.5B
SG&A Expenses	$19.9B
Other Expenses	$306M
Operating Expenses	$33.0B
Cost & Expenses	$67.2B
OPERATING INCOME	$29.0B
Interest Income	$1.4B
Interest Expense	$2.2B
Other Income/Expenses	$876M
INCOME BEFORE TAX	$29.9B
Income Tax Expense	$4.4B
Net Income from Continuing Ops	$25.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$25.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$25.5B
D&A	$8.8B
EBIT	$32.1B
EBITDA	$40.9B
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$25.5B
Depreciation & Amortization	$8.8B
Stock-Based Compensation	$3.3B
Deferred Income Tax	-$829M
Other Non-Cash Items	-$2.1B
Change in Working Capital	$4.9B
OPERATING CASH FLOW	$39.5B
Capital Expenditure	-$8.1B
Acquisitions (Net)	-$25.9B
Purchases of Investments	-$176.9B
Sales/Maturities of Investments	$164.4B
Other Investing Activities	-$197M
NET CASH FROM INVESTING	-$46.8B
Net Debt Issuance	$31.5B
Common Stock Repurchased	-$11.8B
Common Dividends Paid	-$11.8B
Other Financing Activities	-$190M
NET CASH FROM FINANCING	$8.4B
FREE CASH FLOW	$31.4B
Net Change in Cash	$1.2B

Balance Sheet

Item	Amount
Cash & Equivalents	$7.7B
Short-Term Investments	$125.3B
Net Receivables	$22.4B
Inventory	$2.2B
Other Current Assets	$5.1B
TOTAL CURRENT ASSETS	$162.7B
PP&E (Net)	$30.3B
Goodwill	$35.1B
Intangible Assets	$10.1B
Long-Term Investments	$6.0B
Tax Assets	$0
Other Non-Current Assets	$6.1B
TOTAL NON-CURRENT ASSETS	$87.6B
TOTAL ASSETS	$250.3B
Account Payables	$7.4B
Short-Term Debt	$10.1B
Deferred Revenue	$24.0B
Other Current Liabilities	$12.0B
TOTAL CURRENT LIABILITIES	$55.7B
Long-Term Debt	$76.1B
Deferred Revenue NC	$2.6B
Deferred Tax Liabilities	$5.7B
Other Non-Current Liabilities	$14.6B
TOTAL NON-CURRENT LIABILITIES	$106.9B
TOTAL LIABILITIES	$162.6B
Common Stock	$69.3B
Additional Paid-In Capital	$0
Retained Earnings	$17.8B
Treasury Stock	$0
Accum. Other Comp. Income	$627M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$87.7B
Minority Interest	$0
TOTAL EQUITY	$87.7B
TOTAL LIABILITIES & EQUITY	$250.3B
Total Debt	$95.5B
Net Debt	$87.9B